ATS Corporation(ATS)

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ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL
1-STAR RATING
PASS
LAST CLOSE
$19.17
09/17/2026
(24-hour delay)

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*as per simulation (see disclosures)
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Upturn Advisory & Investor View for ATS

09/17/2026: ATS (1-star) is currently NOT-A-BUY. Pass it for now.

ATS Corporation is a global industrial automation provider specializing in custom assembly and testing systems for complex products. The company has a leading position in high-value industries like life sciences and transportation, supported by a proven strategy of growth through strategic acquisitions. Its main opportunity lies in the global shift toward automated manufacturing and digital factory technologies. However, the business is sensitive to industrial cyclicality and requires meticulous execution of large-scale projects, presenting notable operational and financial risks. The stock may best suit growth-oriented investors who are comfortable with the inherent volatility of the project-based engineering sector and wish to monitor major industrial capital expenditure trends.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorStrong fitATS offers exposure to secular automation trends and has a proven track record of scaling via M&A.
Momentum investorMixed fitMomentum depends on the current pipeline of large contract wins and industry capital expenditure cycles.
Value investorMixed fitThe company often trades at premiums reflective of its growth potential rather than traditional value metrics.
Dividend investorWeak fitATS does not pay a dividend, prioritizing capital allocation toward business expansion.
Low-risk investorWeak fitThe project-based nature of the business and cyclical end-market exposure create inherent price volatility.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityMedium / highThe stock is sensitive to industrial market sentiment and large project outcomes.
Valuation riskMediumGrowth expectations are often priced in, leaving little room for earnings misses.
Competition risk (Automation)MediumHigh competition from both incumbents and new entrants impacts pricing power.
Business qualityMedium / highThe engineering-intensive, custom-solution model provides a strong niche moat.
Dividend incomeLow / noneInvestors receive no current income, relying entirely on capital appreciation.
Execution riskMedium / highDelivering complex, multi-million dollar projects on time and budget is critical for margin preservation.

Price Behavior

Steep Decline
PRICE PATH

Steep Decline

The stock price has dropped sharply with strong downward pressure.

Choppy
PRICE STABILITY

Choppy

The stock has experienced frequent reversals and pronounced short-term price swings.

Analysis of Past Performance

Type Stock
Historic Profit -18.9%
Avg. Invested days 38
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 2.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 09/17/2026

Upturn Scorecard

Upturn Star Rating

ATS receives a 3-star rating, supported by solid company fundamentals, and solid analyst coverage. The rating is constrained by weak price momentum.

Company Fundamentals

ATS has solid overall fundamentals (4 stars), with moderate financial health, solid growth momentum, and solid ownership. In FY2026 versus FY2025, strong earnings growth (+355.4%) and solid cash generation (FCF margin 12.5%) are partially offset by soft profitability (net margin 2.4%), very low insider ownership of 0.22%.

Financial Health Rating

ATS's financial health is supported by solid cash strength, including free-cash-flow generation (12.5% of revenue). Profitability is soft (2 stars), which helps explain the 3-star overall score.

Growth Momentum Score

Free-cash-flow growth is ATS's strongest growth driver at +811.1% FY2026 versus FY2025 (strong, 5 stars). Revenue growth (+17.4%, solid) and earnings growth (+355.4%, strong) are also constructive, though not equally high across every growth measure.

Ownership

Institutional ownership is 89.6% and approximately 74.7% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership is only 0.22%, which materially reduces the ownership score.

Top 5 Institutional Investors

Mason Capital Management LLC 16.72%
Royal Bank of Canada 7.91%
EdgePoint Investment 7.14%
Beutel, Goodman & Company Ltd. 5.56%
Turtle Creek Asset Management Inc. 4.99%

Unit Economics (Per $1K Revenue)

ATS generates approximately $286 of gross profit, $75 of operating income, and $125 of free cash flow for every $1,000 of revenue. Based on FY2026 results. Strong cash conversion and healthy margins support the rating, although capital efficiency remains below the highest tier.

Economic Dimensions

Effective Tax Rate: 27.69%

Quantitative Style Profile

ATS has a liquid profile. Weak momentum is the primary drawback, while valuation that is moderately attractive rather than deeply discounted.

Style Classification

Quality Focused

Small / Mid Cap RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 1.88B USD
Price to earnings Ratio 54.8
1Y Target Price 35
Price to earnings Ratio 54.8
1Y Target Price 35
Volume (30-day avg) 332.1K shares
Beta 1.16
52 Weeks Range 18.41 - 35.82
Updated Date 09/16/2026
52 Weeks Range 18.41 - 35.82
Updated Date 09/16/2026
Dividends yield (FY) -
Basic EPS (TTM) 0.35

How Company Makes Money

Business areaWhat it includesRetail investor read
Automation SystemsCustom machines for assembly, testing, and handling.This is the core business of building machines for customers, which accounts for the majority of revenue.
Service & DigitalPost-sale maintenance, software, and spare parts.This segment provides more predictable, recurring income that helps smooth out project-based volatility.

Analyzing Revenue: Products, Geography and Growth

Revenue by Geography

Geography revenue - Year on Year

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Valuation

Trailing PE 54.8
Forward PE 17.73
Enterprise Value 2.74B
Price to Sales(TTM) 0.64
Enterprise Value 2.74B
Price to Sales(TTM) 0.64
Enterprise Value to Revenue 1.3
Enterprise Value to EBITDA 11.43
Shares Outstanding 98.13M
Shares Floating 73.35M
Shares Outstanding 98.13M
Shares Floating 73.35M
Percent Insiders 0.22
Percent Institutions 89.61

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About ATS Corporation

Exchange NYSE
Headquarters Cambridge, ON, Canada
IPO Launch date 2016-01-04
CEO & Executive Director Mr. Douglas William Wright
Sector Industrials
Industry Specialty Industrial Machinery
Full time employees 7000
Full time employees 7000

ATS Corporation, together with its subsidiaries, engages in the planning, designing, building, commissioning, and servicing of automated manufacturing and assembly systems worldwide. The company offers pre-automation services comprising discovery and analysis, concept development, simulation, and total cost of ownership modeling; post-automation services, including training, process optimization, preventive maintenance, emergency and on-call support, spare parts, retooling, retrofits, and equipment relocation; and contract manufacturing services, as well as after-sales services. It also provides engineering design, prototyping, process verification, specification writing, software and manufacturing process controls development, standard automation products and platforms, equipment design and build, third-party equipment qualification, procurement and integration, automation system installation, product line commissioning, validation, and documentation services. In addition, the company offers value engineering, supply chain management, and integration and manufacturing capabilities, as well as other automation products and solutions; and software and digital solutions comprising connected factory floor management systems to capture, analyze, and use real-time machine performance data to troubleshoot issues, deliver process and product solutions, prevent equipment downtime, drive operational efficiency, and unlock performance for sustainable production improvements. It serves the life sciences, transportation and mobility, consumer products, food and beverage, electronics, nuclear, packaging, warehousing and distribution, and energy markets. The company was formerly known as ATS Automation Tooling Systems Inc. and changed its name to ATS Corporation in November 2022. ATS Corporation was founded in 1978 and is headquartered in Cambridge, Canada.